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To determine whether a company is using leverage effectively, an analyst should consider
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To determine whether a company is using leverage effectively, an analyst should consider
To determine whether a company is using leverage effectively, an analyst should consider
▸ the current ratio and net working capital.
▸ inventory, accounts receivable and total asset turnover ratios.
▸ the debt to equity and times interest earned ratios.
▸ ROA and the net profit margin.
Textbook
Fundamentals of Investing
Edition:
14
th
Authors:
Zutter, Smart
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the debt to equity and times interest earned ratios.
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CountrySlim84
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I appreciate what you did here, answered it right
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Thanks for your help!!
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Good timing,
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